Pegasus Airlines Inc. (PGSUS) has continued to attract investor attention with its strong performance and renewed fleet in the third quarter of 2024 (3Q24). In a report published on January 30, 2025, Ahlatcı Yatırım maintained its “buy” recommendation for Pegasus stock and set a target price of TRY 334.42.
Pegasus’ Strong Financial Performance
Exceeding market expectations, Pegasus reported a record quarterly revenue of TRY 40.1 billion in Q3 2024. The passenger load factor reached 89.1%, marking a 140 basis point increase compared to the same period last year. The airline operated flights to 144 destinations, while available seat kilometers (ASK) grew by 9%.
The modernized fleet, with improved fuel efficiency and higher capacity, positively impacted margins. Pegasus’ fleet size reached 112 aircraft. In 2024, the company’s revenue composition was 49% in Euros, 30% in U.S. dollars, and 19% in Turkish lira.
EBITDA and Net Profit Performance
Pegasus posted an EBITDA of TRY 16.03 billion in Q3 2024, surpassing market expectations of TRY 15 billion. For the nine-month period, EBITDA grew by 60% YoY to TRY 25.3 billion. Pegasus remains one of the global airline industry’s top performers in EBITDA margin, achieving a 40.01% EBITDA margin in Q3 2024.
On the net profit side, the airline reported a TRY 10.8 billion net profit for Q3 2024, exceeding market forecasts. The nine-month net profit rose 25% YoY to TRY 11.3 billion.
Debt Position and Future Outlook
As of Q3 2024, Pegasus’ net debt stood at TRY 28.5 billion. The airline’s expanded and fuel-efficient fleet is expected to support capacity growth while positively impacting margins and revenue expansion.
Additionally, infrastructure investments in Turkish airports, including terminal and runway upgrades, are anticipated to reduce taxi times and enhance operational efficiency, further benefiting the company’s performance.
Target Price and Recommendation
Ahlatcı Yatırım reaffirmed its “buy” recommendation for Pegasus stock, maintaining a target price of TRY 334.42, implying an upside potential of 43.83%.
| Brokerage | Target Price | Current Price | Recommendation | Upside Potential | Report Date |
|---|---|---|---|---|---|
| Ahlatcı Yatırım | TRY 334.42 | TRY 232.50 | Buy | 43.83% | January 30, 2025 |
Key Highlights for Investors
- The modernized fleet and expanded destinations remain key drivers of long-term revenue growth.
- Strong EBITDA margins and fuel efficiency enhance operational profitability.
- Infrastructure investments in Turkey are expected to reduce taxi times and boost operational performance.
With its low-cost airline model and robust financial performance, Pegasus continues to be an attractive investment option for investors.
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